NEFCO grants financing for fuel efficient vehicles in Novgorod

Snowy streets in Novgorod. NEFCO's loan will upgrade the city's fleet of street-cleaning vehicles.

NEFCO has granted a loan for upgrading the fleet of vehicles and machinery owned by the private company Novgorod Spetzautokhoziastvo, which is responsible for cleaning and removing solid waste for the city of Novgorod.

The overall aim of the project is to replace existing, outdated machinery with modern and environmentally friendly street cleaning vehicles. The loan, valued at EUR 290,700, will be disbursed from NEFCO’s facility for cleaner production.

The Novgorod project is expected to reduce harmful yearly emissions of nitrogen oxides, carbon monoxide and organic carbon by almost 100 tonnes for each substance. The procurement of new, fuel efficient vehicles will also reduce fuel consumption by approximately 95,000 litres per year, and help to reduce carbon dioxide emissions by some 215 tonnes per year. The payback period for the loan is 3.8 years.

“This is the second loan targeted for emission reduction measures in the transports sector in Russia, which we have approved because there is a demand for modernizing the fleets of machines in many Russian cities. We hope that this funding can stimulate similar upgrades in other areas,” says NEFCO’s Investment Manager, Maria Maliniemi.

Vitaly Artyushchenko, an investment adviser and NEFCO’s representative in Russia, is equally upbeat about the potential of the project;

”Since 2002, NEFCO has, through various mechanisms, supported several investments aimed at improving the solid waste management operations in Russia. We are delighted that this cooperation has also extended to the street cleaning sector, and hope that this specific project will help to improve the quality of street cleaning services and also reduce the emissions of harmful wastes during transportation in Russia’s oldest city, which has just celebrated its 1150th anniversary”, he says.

The city of Novgorod, which is located in north western Russia, has some 220,000 inhabitants.

Learn more about NEFCO’s facility for cleaner production

Learn more about NEFCO’s loans for environmentally sound transports

Read more about the city of Novgorod

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